IMPACT OF LIBERALIZATION ON INDIAN LIFE INSURANCE INDUSTRY AN EXPLORATORY FACTOR ANALYSIS
Keywords:
Insurance, Liberalization, IRDA, Factor AnalysisAbstract
There is a substantial amount of debate regarding the impact of liberalization on Indian life insurance industry; huge literature available on the impact of liberalization on the key components in the world context. Few studies are available in context of Indian insurance industry that have examined varying aspects such as emerging strategic and regulatory issues, appraisal of industry development, deregulation of industry and economic growth nexus, changing trend structure and innovation in post liberalization phase. The main purpose of this paper is to examine the factors that influenced the development of the life insurance industry in India in post liberalization phase. To cater a central interest of this paper by using data of 552 respondent from various categories such as Intermediaries, Employees, and Customers across length and breadth of the country; empirically examined the impact of the liberalization on Indian life insurance industry, and extracted the factors by applying Exploratory Factor Analysis for identifying groups or clusters of variables that relate to each other. Based on the results obtained; it is concluded that significant impact of liberalization mainly be explained by the factors such as Marketing Mix, Service Quality and Insurance awareness. The research results undoubtedly confirm the significance of the relationship between liberalization trends and change factors in the insurance market of India, hence providing a background for further research in this area and description and illustration of brief and step by step overview of exploratory factor analysis (principal component analysis) by using SPSS.
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